Following reforms : FDI in retail & aviation approved, next in Insurance & pension?

IMP-ost : 17th Sep, 2012    ( Post 6 of 7 )

With government appoving FDI in retail and aviation, international super-market chains can now enter India markets and foreign airlines can buy stake in Indian airlines.

Proposals to increase FDI in insurance and pension sectors are currently pending approval. 

Domestic private insurance companies and their foriegn partners have been demanding an increase in the FDI cap to 49 per cent to inorder to fund their business expansion plans.

As per the current regulations in India, only a maximum of 26 per cent stake can be held in private insurance companies by their foreign partners.

What is Foreign Direct Investment?

Foreign Direct Investment, or FDI, is a measure of foreign ownership of domestic productive assets such as factories, land and organizations. Foreign direct investments have become the major economic driver of globalization, accounting for over half of all cross-border investments.

Strong positive signals for Indian stock markets in addition to easy FII flow!